Software Futures has introduced a new strategic sourcing service, which allows clients to focus on their core capabilities, while gaining the benefit of an experienced partner with expertise in the sourcing of information systems (IS).
This is in line with the move by business to migrate to modular business models, stick to the things they do well and outsource the rest.
Ziaan Hattingh, principal consultant for strategic sourcing at Software Futures, says the service differs significantly from traditional outsourcing and is going to redefine the rules thereof.
"It takes a consultative approach and starts off by aligning internal and external services with company requirements in the IS function. It is built on the principles of a partnership between the external service provider and the company, based on which we provide a customised strategic sourcing solution. Its success is measured by the success of the company and its IS function in particular," says Hattingh.
He says Software Futures' offering differs from other external service providers, as it is based on its best practice buy, build and blend (B3) solution. This gives the customer the flexibility to:
* Buy an off-the-shelf software package (which Software Futures will then implement);
* Purchase a purpose-built software solution from Software Futures;
* Blend the above two scenarios.
In addition, as opposed to most players in the outsourcing industry, Software Futures does not lock clients into rigid long-term agreements and can adapt to any change that may occur in a business. "If a business changes in six months and it need a different sourcing arrangement, we are prepared to make that move with our customers. Other companies don't offer that - their clients are often tied into five-year contracts, from which they cannot escape."
With strategic sourcing, says Hattingh, outsourcing contracts (any sourcing contract) can no longer be rigid and companies expect flexibility and a specific outcome. Software Futures offers its clients a value proposition in the strategic sourcing domain that has been developed out of extensive experience in the domain of IS sourcing, he adds.
The sourcing contract is strategically aligned with an organisation's objectives, which provides measurable success for both the company and the external service provider, through the partnership. This allows customers to improve the performance of their information systems, increase organisational flexibility and reduce operational costs associated with IS without taking on the risks normally associated with outsourcing.
Though Software Futures has a number of strategic partners in the software development space, it is not linked to any specific vendor, but can integrate and innovate across a number of partners and platforms, such as Java, C++, IBM, Oracle, Rational and Microsoft.
Software Futures can assist a company across the entire sourcing spectrum using a variety of term-based sourcing approaches, says Hattingh, from helping it to develop skills to do the job itself, to the extreme of full outsourcing.
The range of options include:
* Full outsourcing agreements, where a part of a company (IS function) is acquired and taken over. It is then managed by Software Futures for the benefit of the client.
* Out-tasking agreements, where the responsibility of certain activities in a company are contracted to Software Futures but no transfer of assets or resources takes place.
* A range of co-sourcing options, where a combination of resources from Software Futures and the client accept joint responsibility for certain outcomes. Co-sourcing arrangements are often housed in joint venture companies.
* Flexible resource agreements, where the client pays a retainer to ensure it has the right number and variety of staff during a peak period, eg Java or C# developers.
* Mentoring agreements, where Software Futures develops the core competency and establishes best practice within the client's business. Once it has built in-house capability, it is weaned off Software Futures.
Hattingh cautions: "When engaging with an external service provider, look for a partner that can help you with more than one project using a variety of different sourcing arrangements. If you outsource to many different companies, it makes it more difficult to manage that wide variety of relationships than doing the job yourself. Focus on your core competencies and ensure you do not have too many relationships to manage."
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